pure cola

8/6/2019 pure cola .

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Marketing Manageme

Authors

Ahmad Sajjad Shabbir (081346-0

Sohaib Mehnood (081346-0

Marketing Plan: PURE COLA


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Contents1 Preface ........................... ........................... .......................... ........................... ........................... ....... 6

2 Business Plan .......................... ........................... .......................... ........................... ......................... 7

2.1 Company Summary .......................... ........................... ........................... ........................... ....... 7

2.2 Company Ownership ......................... .......................... ........................... ........................... ....... 7

2.3 Start-up Summary ........................ ........................... ........................... ........................... ........... 7

2.4 Our Mission ........................ ........................... ........................... ........................... .................... 7

2.5 Our Vision .......................... ........................... ........................... ........................... .................... 7

2.6 Goals and Objectives ........................ ........................... ........................... ........................... ....... 8

2.7 Business Philosophy .......................... .......................... ........................... ........................... ....... 8

2.8 Industry Situation ......................... ........................... ........................... ........................... ........... 8

2.9 Company strengths ....................... ........................... ........................... ........................... ........... 8

3 Marketing Plan ........................... ........................... ........................... ........................... .................... 9

3.1 Situational Analysis .......................... ........................... ........................... ........................... ....... 9

3.2 Company Analysis ....................... ........................... ........................... ........................... ........... 9

3.3 Marketing Research and customer analysis ........................... ........................... ......................... 9

Questionnaire ................................................................................................................................ 10

3.4 Market Demographics ........................... ........................... ........................... ........................... 20

3.5 Industry Analysis ......................... ........................... ........................... ........................... ......... 20

3.6 SWOT analysis ....................... ........................... ........................... ........................... .............. 20

3.6.1 STRENGTHS: ........................... .......................... ........................... ........................... ..... 20

3.6.2 WEAKNESSES:........................ .......................... ........................... ........................... ..... 21

3.6.3 OPPORTUNITIES: ....................... ........................... ........................... ........................... 21

4 Target market and Segmentation ............................ ........................... ........................... .................. 22

4.1 Segmentation strategy of Pure Cola ......................... ........................... ........................... ......... 22

4.1.1 Demographic Segmentation ........................ ........................... ........................... .............. 22

4.1.2 Psychographic Segmentation .......................... ............................ ........................... ......... 23

5 Marketing Mix of our product ........................... ........................... ........................... ....................... 235.1 Product ....................... ........................... ........................... ........................... ........................... 23

5.2 Price ........................... ........................... ........................... ........................... ........................... 24

5.3 Promotion ........................... ........................... ........................... ........................... .................. 24

5.4 Place .......................... ........................... ........................... ........................... ........................... 24

5.5 Distribution Channels ....................... ........................... ........................... ........................... ..... 24


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6 Pricing Strategies and Programs ......................... .......................... ........................... ....................... 25

6.1 Which factors we used to switch the customers? ........................ ........................... .................. 25

6.2 How we develop pricing strategy? ........................... ........................... ........................... ......... 25

6.3 How we implement Price Cues? ........................... ........................... ........................... ......... 25

6.3.1 When we use price Cues? ........................... ........................... ........................... .............. 25

6.4 How we set the price? ....................... ........................... ........................... ........................... ..... 26

6.5 How we analyze competitors Cost, price, and offers? .......................... ........................... ......... 26

6.6 Selecting a Price Method ........................... ........................... ........................... ....................... 26

7 Creating Brand Equity.............................. ........................... ........................... ........................... ..... 27

7.1 Why launch new brand in market? ........................... ........................... ........................... ......... 27

7.2 How we create brand equity in market? ............................ ........................... ........................... 27

7.3 Brands Elements.................. ........................... ........................... ........................... .................. 27

7.4 Leveraging Secondary Association .......................... ........................... ........................... ......... 27

7.5 How we decided for brand extension?.......................... ........................... ........................... ..... 28

8 Advertisement decisions of Pure Cola ........................ ........................... ........................... .............. 28

8.1 ADVERTISEMENT OBJECTIVE .......................... ........................... ........................... ......... 28

8.2 Setting of Advertising Budget ......................... ........................... ........................... .................. 28

8.3 Advertisement Media ....................... ........................... ........................... ........................... ..... 28

9 Financials .......................... ........................... ........................... ........................... ........................... 29

9.1 Advertisement Budget ........................... ........................... ........................... ........................... 29

9.2 ROI on Advertizing Budget ....................... ........................... ........................... ....................... 30

9.3 Monthly Sale forecast for TWO years .......................... ........................... ........................... ..... 31

9.4 Pro Forma Income Statement .......................... ........................... ........................... .................. 32

10 Bibliography ........................... ........................... ........................... ........................... .................. 33


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Acknowledgment

At the very outset we would like to thank in our own humble way the Almighty Allah for giving

us the resources, the comprehension and the strength for completing this task.

We are also indebted to our supervisor Mr. Khalil Ahmad Arbi for his guidance and

supervision, which has played a vital role in the completion of this project.

In addition we are thankful to our families who have been supportive during our MSBF work.

We are extremely grateful to our parents who always wanted the best for us and encouraged

us to carry on.


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Special Tribute

Since this is our last session in UMT so we are deeply indebted to our teachers for providing us such a

great platform of learning especially we are extremely grateful to ProfessorMr. Khalil Ahmad Arbi

for providing us the requisite information and guidance trough out the MSBF.

Some words for Light House:

Honorable Khalil Sahib your kind support and immense knowledge gave us inspiration to work hard

and according to the degree requirements. Without your generosity of sprit, it would not have been

possible for us to carry our studies in MSBF. This is our last session in University and it would be apt

saying that all the steps having a ting of prosperous acquisition are directed in your guidance. You are a

light house who provided the light to make us trade on the path of our upcoming career, keeping pace

with the developing world. We extend our deepest thanks for your scholarly endeavor to teach us.

Thank you sir for being our Resource person, we promise that we will try our level best to be like you

smart, interesting, engaging, positive, confident, yet unpretentious, well-informed and easy to understand,thinking with your heart as well as your head with sensitivity and insight.

God bless UMT, God Bless you

Ahmad Sajjad Shabbir

Sohaib Mehmood


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1 Preface

Students of MSBF

University of Management and Technology

Mr. Khalil Ahmad Arbi

Resource Person: Marketing Management

University of Management and Technology

Respected Sir,

Here is the project on the Marketing Management. In this project our target is to launch a product& implement all market segments on it. Our product name is Pure Cola. This is basically a soft

drink/ carbonated soft drink (CSD). In this project we explain that how we launch the product,

marketing activities, promos, brand & branding, pricing, identify the competitor, sales

promotions & advertisement. These are all market segments & tools which we implement on our

product.

This project was very interesting. We enjoyed a lot during the work on this project. We are

thankful to you that you assign us such an interesting project.

Sincerely

Ahmad Sajjad Shabbir (081346-002)

Sohaib Mehmood (081346-003)


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Executive Summary

Pure cola (PVT) limited will sell soft drinks (Pure cola, Pure Lemon, Pure Orange and Pure Diet)

as its primary products in addition to Juices for 10 different flavors.

Pure (PVT) Limited has been around for many years, beginning with the business of Riceproduction then enters in biscuits, and now planning to enter in soft drink business with a name

Pure Cola (PVT) Limited

Because Pure (PVT) Limited has already delivering value added products in Rice, and Biscuits

to its valued customers so we are sure that due to delivering valued and quality products with an

excellent customer care Pure cola will get a good market share and develop taste in his customers

very quickly.

2 Business Plan

2.1 Company Summary

Pure cola will be known for selling Soft drinks with 4 different flavored syrups to children and

other all age people in Pakistan

2.2 Company OwnershipPure cola will be owned its two Directors as Pure Cola (PVT) Limited

2.3 Start-up Summary

Start-up costs will be approximately Rs 100 Million which will include facility construction

including inventory, mandatory company registration fee, and other expenses associated withopening this business. To start business Debt to equity ratio will be 70:30

2.4 Our MissionOur purpose is to refresh people by delivering value added and unique products

2.5 Our Vision

y People: Be a great place to work where people are inspired to be the best they can be.

y Portfolio: Portfolio of quality beverages brands that anticipate and safety peoplesdesires.

y Partners: Nurture a winning network of customers and suppliers, together we createmutual, enduring value.

y Profit: Maximize long- term return to share owners while being mindful of our overallresponsibilities.

y Productivity: Be a highly effective, lean and fast moving product.


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2.6 Goals and Objectives

Pure cola endeavor to achieve the highest level of customer satisfaction in relation to products

provided by the company. This is further achieved by ensuring that the highest quality standards

are adopted on all levels of manufacturing and production, for guaranteed 100% customer

protection when using the product.

Furthermore the company is committed to maintaining good employment opportunities and

working conditions for all employees, to build a reputable organization culture. This concerns

promotional and sales staff, management and the like. The primary financial goal of pure cola

product is to gain 10% market share over the first 5 years

2.7 Business Philosophy

Money plays vital role for every person living in the world. Our business Philosophy is to

delivering best quality and uniqueness to our customers by spending fewer prices as other

companies providing same products in market.

2.8 Industry Situation

Through our Research and development department we come to know that due to global

changing in weather and culture market size of soft drink industry is increasing continuously.

In Pakistan there are mainly 6 companies in soft drink business. So due to growing demand and

fewer companies we can get good market share in industry in very little time by providing value

added and unique taste

2.9 Company strengthsSince we are in the business of FMCG since 10 years and specifically in the business of beverage

industry from last 3 years

Economies of scope are the main strength of our business that helps us to start and get success in

soft drink business, and we have unique organizational culture, committed employee efficient

distribution network


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3 Marketing Plan

3.1 Situational AnalysisOur company is new to market; we are new into soft drink industry. We are committed to make a

difference in the soft drink industry of Pakistan which our unique products with high quality

ingredients, reasonable price and ease of availability

3.2 Company AnalysisOur COMPANY will operate from Pure Cola (PVT) Limited 10 Km Multan roads Lahore;

We will not hire top level positions our existing Heads will take extra charge and get extra

benefits and perks.

We will supply our product to major retailers, wholesalers and distributors who will distribute

our product to the end consumers.

3.3 Marketing Research and customer analysisFor the launching of our product, we conduct a survey through a questionnaire for check the

market potential and analyze customer & consumer demand.

In todays society, people are looking to lead better, healthier lives, Pure cola seeing this trend

will produce, diet drinks that have the same great taste as their regular drinks while still being

low fat or low calorie drinks, such as diet Pure cola, or Diet Pure Lemon .


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Questionnaire

Current Facilities & Preferences

1. Do you use soft-drink services in the area?

y Yes

y No

Yes 67

NO 33

Objective

Our objective of this question is to determine the target areas. Where the people use soft drinks

more frequently

Findings

The research finding are shows 67% people use soft drink in the residential areas & 33% people

are those who use soft drinks in public areas.

Likeness

NO, 33%

, YES,

67%

YES

NO


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2. Which company soft-Drink services do you use (if any)?

y a) Coca Colay b) Pepsiy c) Amrat Cola

y d) Others__________

Coca

Cola 48

Pepsi 27

Amrat 10

Others 15

Objective

Check the consumers most like brand in the market.

Findings

The research shows that 48% people use Coca Cola, 27% people use Pepsi, 10% people use

Amrat cola, & 15% people use other brands.


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3. What size of soft-Drink do you prefer?

y a) 250ml

y b) 330ml

y c) 400ml

yd) 500ml

40% 250ml

10% 330ml

30% 400ml

20% 500ml

Objective

Check the pack size which people most like to use.

Findings

The research shows that 40% people use 250ml RGB (REGULAR GLASS BOTTLE) bottle,

10% people use 330ml Can, 30% people use 400ml bottle, & 30% people use 500ml pet.

Preference

40%

10%

30%

20%

250ml

330ml

400ml

500ml


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6. How much are you prepared to pay for Soft-drink?

y a) Less than Rs.10/-

y b) Between Rs.10 Rs.13/-

y c) Between Rs.13 Rs.15/-

yd) Over Rs.15/-

33% Less than Rs.10/-

41% B/W Rs.10 - Rs.13/-

20% B/W Rs.13 - Rs.15/-

6% Over Rs.15/-

Objective

We check how much people spent on soft drinks.

Findings

The research shows that 33% people want to spent less than Rs.10/-, 41% people want to spent

B/W Rs.10 to Rs.13/- , 20% people want to spent Rs.13 to rs.15/- & 6% people want spent more

than rs.15/-.


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7. Would you like to buy any new company soft-drink?

y Yes

y No

y Some times

39 Yes

47 No

14 Some Times

Objective

The purpose is that how many people use new company soft drinks. This helps us to launch our

products.

Findings

The results shows that 39% people want to use new company soft drinks, 47% people does not

want to use & 14% people sometimes want to use new company soft drinks.


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8. How far do you live from the stall?

y a) Less than half-a-mile

y b) Half-a-mile to two-miles

y c) Over two-miles

51 Less than half-a-mile

33 Half-a-mile to two miles

16 Over two miles

Objective

The purpose of this question is that we want to check the availability of soft drink. How far the

drinks are available from consumer. Purpose is that we available our product on door step of

consumer.

Findings

The result shows that 51% people live less than half mile of stores, 33% people live half to two

miles of stores, & 16% people live over two miles.


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10. How often do you pass the stall?

y a) Every day

y b) Twice a week

y c) Once a week

yd) Once a month

47 Every day

22 Twice a week

17 Once a week

14 Once a month

Objective

The objective is that we want to check how many people go on stores for shopping daily bases.

Findings

The result shows that 47% people go on store for daily bases, 22% people go twice in a week, &

17% people go once in a week, & 14% people go once in a month.

Pass From Stall

0

1020304050

Pass From Stall

Pass From Stall


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11. Your age group?

y a) Up to 18

y b) Between 18 and 30

y c) Between 30 and 50

yd) Over 50

41 Up to 18

34

Between 18 &

30

18

Between 30 &

50

7 Over 50

Objective

The objective of this question is that we want to check the age groups that are most likely to use

the soft drink.

Findings

The result shows 41% of users are teen agers, 34% people are B/W 18 to 30 years old, 18%

peoples are 30 to 50 years old, & 7% peoples are over 50 years.

05101520253035

4045


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3.4 Market Demographics

POPULATION: 176,242,949 (July, 2009 EST.) GROWTH RATE: 1.828%

BIRTH RATE: 27.74 births/1,000 population

DEATH RATE: 8 deaths/ 1,000 population

NET MIGRATION RATE: 1.24 migrant(s) / 1,000 population

0-14 YEARS: 37.2% ( male: 33,739,547 / female: 31,868, 065)

15-64 YEARS: 58.6% (male: 52, 849, 607 / female: 50, 378, 198)

65 YEARS AND OVER: 4.2% (male: 3,475,927/female: 3,931,605)

3.5 Industry Analysis

POPULATION: 176,242,949 (July, 2009 EST.)

CHILDREN: 37.2% (65,607,612)

ADULTS: 62.8% (110,680,572)

CHILDREN EQUITY: 60% (14,643,619)

ADULT EQUITY: 40% (27,802,960)

TOTAL TARGET MARKET: 42,446,579

3.6 SWOT analysis

SWOT Analysis is a strategic planning tool used to evaluate the Strengths, Weaknesses,

Opportunities, and Threats inside a company, project, or a business venture. It involves

identifying the internal and external factors that are favorable/ unfavorable for business to

succeed.

3.6.1 STRENGTHS:

Knowledge

Our competitors are others beverages companies such as Gourmet & Amrat.

Relationship selling

We get to know our customers, one by one. Our direct sales force maintains a relationship.

History

We develop new products in market as such our competitors have good market worth.


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4 Target market and Segmentation

This is the process of evaluating each market segments attractiveness and selecting one or more

segments to enter.

After evaluating different segments, the company must now decide which and how many

segments it will target, because buyers have unique needs and wants, a seller could potentially

view each buyer as a separate target market. Ideally, then, a seller might design a separate

marketing program for each buyer. There are three types of market segments.

y Undifferentiated marketing. (Mass Marketing)

y Differentiated marketing. (Segmented Marketing)

y Concentrated marketing. (Segmented Marketing, small segment)

4.1 Segmentation strategy ofPure ColaPure Cola will serves its products using mass marketing technique, which obviously falls in

undifferentiated marketing, and undifferentiated marketing means no segmentation, but there are

minor factors on which we can say that the Pure cola will segments its products and then targets

the customers somehow. These factors are as follows.

Pure segments more in urban and suburban areas as compare to rural. 35 % population resides in

urban areas and 65% population lives in rural areas in Pakistan. Pure Cola is focusing on urbanareas as people there are more inclined towards such beverage while people in rural areas are

more inclined drinking lassi and desi drinks.

4.1.1 Demographic Segmentation

AGE

Pakistan is considered to be a young country i.e. average age of Pakistani population is less than

38 years. Thus targeting young generation can be a beneficial marketing strategy for soft drink

companies. In fact this is the case, all the major brands like Coca Cola, Pepsi, and Gourmet

mainly target younger generation in Pakistan.

GENDER

Pure cola will target both genders with its wide variety of drinks. This market is relatively largeand is open to both genders, thereby allowing greater product diversification.

FAMILY TYPEPure cola will introduce its economy pack, and thats how they focus family and groups.

INCOME

Pure Cola will segment different income levels by packaging. Like for small income people it

has small returnable glass bottle, for middle people it has non returnable bottle and for higher

income people it has coke tin.


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4.1.2 Psychographic Segmentation

All psychographics variables the social class, lifestyle, occupation, level of education and

personality, Pure Cola will segments everyone, but again it is their packaging which is different

for different consumers.

LEVEL OFEDUCATION

A company has to make promotional strategies keeping in view the customer level. If the

percentage of education is high in a country then through advertisements people can be made

well aware of their product and can convey their message easily. Promotion and education has a

direct relationship.

5 Marketing Mix ofour product

There are 4 Ps of marketing mix which we implement on our products.

y Product

y Price

y Promotion

y Place

5.1 Product

Product VarietyWe provide it in

y Pure cola,

y Pure lemon,y Pure range

y Pure Diet

QualityWe maintain quality for all consumers.

DesignWe design bottle in RGB (REGULAR GLASS BOTTLE).

Brand nameOur brand name is pure Cola

PackagingIt will provide in the pack of 24 bottles.

SizeIt will provide in 250 ml RGB (REGULAR GLASS BOTTLE) pack.


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6 Pricing Strategies and Programs

6.1 Which factors we used to switch the customers?Customers switching is a big problem. We will use these factors which help us to retrieve our

customers.

y Pricing

y Inconvenience

y Core service

y Matching Competition activities

y Resolve Ethical problems

6.2 How we develop pricing strategy?We will include all of our direct & indirect expenses, taxes, premium, salaries & wages and all

others miscellaneous expenses. These are all the factors which help us to determine the price.

6.3

How we implement P

riceC

ues?We implement price cues to our business on these stores where the customers frequently move

for buying.

Price Cues factors are these which we implement:-

A) Left to right pricing

B) Odd number discount perception

A) Left to right pricingWe use left to right price cues on high volume high image accounts e.g. cash & carry. Left to

right price system is (Rs.11 vs. Rs.12).

B) Odd number discount perceptionWe use the odd number discounting system such as discount of Rs.2/- per bottle.

6.3.1 When we use price Cues?

We use price cues when

A) Customers purchase item infrequently

B) Customers are new

A) Customers purchase item infrequentlyWe use left to right price system when the customers purchase is infrequently.

B) Customers are NewWe used odd number discounting perception system on price cues.


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6.4 How we set the price?We use these methods to determine the prices

A)Select the price ObjectiveB)Determine demand

C)Estimate costD)Analyze competitor price mixE)Select pricing methodF)Select final price

We use two ways to set the prices

A) Select the price ObjectiveOur main objective are to determine the prices are survival in market, maximum profit, maximum

market share, maximum market skimming, & products quality leadership.

B) Determine demandWe set the price by determine the demand in market.

6.5 How we analyze competitors Cost, price, and offers?For analyzing the competitor price we should consider the nearest competitor price. For this we used

these methods.

y We evaluate competitor customers worth

y Valuate the compotator price

y Check the compotators offers to customers

After evaluate the compotator, than we decide whether it can charge more, the same, or less than the

compotator.

6.6 Selecting a Price MethodAfter evaluate the competitor price. Calculate our price we use this method

Unit Cost = Variable Cost+ Fixed Cost/Units ready for sales

Unit Cost = Rs 8 per unit

Per Unit Price =Rs 12


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7 Creating Brand Equity

7.1 Why launch new brand in market?We launch new brand in market because we will change the taste of customers & consumers

according their needs. Now in 21st century new generation wants something new. So as per the

new generation demand we introduce this brand that will attract this generation. This is because

the brand is equity of a business. So, we want to build good market share, brand equity & high

return through this brand.

7.2 How we create brand equity in market?

Brand equity is the value of any brand. We create a different brand name, which develop our

brand equity in the market. For this purpose we develop a brand symbol which identify to

consumer that is our brand & in other activities we develop a URL, symbol, logos, packaging,

signage, & flags on shop, which identify that pure cola is a brand.

7.3 Brands ElementsWe develop these types of brands elements which will

y Memorable

y Meaningful

y Likable

y Adaptable

7.4 Leveraging Secondary AssociationIn the process of leveraging secondary association, we will build our brand equity from different

activities such as

y Concerts

Through concerts we engage new generation. New generation is just like a master hand to develop

brand equity.

y Consumer Promos

CP is a big factor to develop brand equity. We use here pull strategy, which is use to pull the

consumer. We introduce buy six bottles get one free.

y Discounting

We use discounting strategy for both our customers and consumer. We say to our customer/

consumers, if you purchase full packs of 12 bottles we will give you the discount of Rs.2/- per bottle

which is Rs.24/- per case.


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9 Financials

9.1 Advertisement Budget

We will spend 20 Million each year on our advertisement. We will spend major portion of ouradvertisement budget in the Months of March, April, May, June, July, August and September.

Detail segregation of marketing expanses:

Medium Budgeted Investment % of Advertisement Budget

TV Adds 8 Million 40%

Billboards 5 Million 25%

Print Media Adds 2 Million 10%

Sports Sponsors 4 Million 20%

Awareness through Morning Shows 1 Million 5%

Budget

Advertisement

TV Adds

Billboards

Print Media adds

awareness through Morning

shows

Sport Sponsors


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9.3 Monthly Sale forecast for TWO years

24 Month Sales ForecastFiscal Year 1 2011

2011

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Tota

Product Name Pure Cola

Units 100,000 100,000 100,000 100,000 520,000 800,000 850, 000 700,000 500,000 510,000 420,000 300,000 5,000,00

Selling Price 12 12 12 12 12 12 12 12 12 12 12 12

Total Sales 1,200,000 1,200,000 1,200,000 1,200,000 6,240,000 9,600,000 10,200,000 8,400,000 6,000,000 6,120,000 5,040,000 3,600,000 60,000,0

% of Total 2.00% 2.00% 2.00% 2.00% 10.40% 16.00% 17.00% 14.00% 10.00% 10.20% 8.40% 6.00% 100.00

2012

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Tota

Units 350,000 400,000 500,000 600,000 700,000 800,000 950, 000 700,000 558,000 590,000 486,000 450,000 7,084,00

Selling Price 12 12 12 12 12 12 12 12 12 12 12 12

Total Sales 4,200,000 4,800,000 6,000,000 7,200,000 8,400,000 9,600,000 11,400,000 8,400,000 6,696,000 7,080,000 5,832,000 5,400,000 85,008,0

% of Total 4.94% 5.65% 7.06% 8.47% 9.88% 11.29% 13.41% 9.88% 7.88% 8.33% 6.86% 6.35% 100.00

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

0 1 2 3 4 5 6 7 8 9 10 11

2011 2012

Uni ts 5, 000, 000 7, 084, 000

Total Sales ########## ##########

010,000,000

20,000,00030,000,00040,000,00050,000,00060,000,00070,000,00080,000,00090,000,000

2011 2012

24 Month Sales Forecast

Units

Total Sales

`


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9.4 Pro Forma Income Statement

m I m m( V ) L d

Amount % of Sales Amount % of Sales

REVENUE

Gross Sales $60,000,000 $85,000,000

Net Sales $60,000,000 100% $85,000,000 100%

COST OF SALES

Inventory $20,000,000 33% $5,000,000 6%

Plus goods purchased / manufactured 5,000,000 8% 25,000,000 29%

Total Goods Available $25,000,000 42% $30,000,000 35%

Less ending inventory 5,000,000 8% 5,000,000 6%

Total Cost of Goods Sold $20,000,000 33% $25,000,000 29%

Gross Profit (Loss) $40,000,000 67% $60,000,000 71%

OPERATING EXPENSES

Selling

Salaries and wages $2,000,000 3% $4,000,000 5%

Commissions 500,000 1% 1,000,000 1%

Advertising 10,000,000 17% 15,000,000 18%

Depreciation 1,000,000 2% 1,000,000 1%

Other 500,000 1% 800,000 1%

Total Selling Expenses $14,000,000 23% $21,800,000 26%

General/Administrative

Salaries and wages $1,000,000 2% $1,000,000 1%

Employee benefits 100,000 0% 100,000 0%

Payroll taxes 50,000 0% 50,000 0%

Insurance 200,000 0% 200,000 0%

Rent 0 0% 0 0%

Utilities 1,000,000 2% 1,000,000 1%

Depreciation & amortization 0 0% 0 0%

Office supplies 200,000 0% 250,000 0%

Travel & entertainment 0 0% 4 0%

Postage 50,000 0% 70,000 0%

Equipment maintenance & rental 100,000 0% 120,000 0%

Interest 0 0% 0 0%

Furniture & equipment 0 0% 0 0%

Total General/Administrative Expenses $2,700,000 5% $2,790,004 3%

Total Operating Expenses $16,700,000 28% $24,590,004 29%

Net Income Before Taxes $23,300,000 39% $35,409,996 42%

Taxes on income 5,126,000 9% 5,592,000 7%

Net Income After Taxes $18,174,000 30% $29,817,996 35%Extraordinary gain or loss $0 0% $0 0%

Income tax on extraordinary gain 0 0% 0 0%

NET INCOME (LOSS) $ 8, 7

, 3 % $

9,8 7,996 35%


33/33

10Bibliographyhttp://www.census.gov.pk/. (2009). Population census of Pakistan. Retrieved April Mondday, 2011, from

http://www.census.gov.pk/

http://www.jaxworks.com. (2010, April Monday). Small Business Spread sheet Factory. Retrieved April

Tuesday, 2011, from Jax Works Small Business Spread sheet Factory: http://www.jaxworks.com

LIMITED, P. B. (n.d.).

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